Commission schedule (contract level)
Also called: commission grid, contract level, comp schedule, commission level
A commission schedule sets the commission rate for each product at each contract level, and an agent's contract level determines which rate they are paid.
Carriers publish schedules by product, and agents or agencies are contracted at a level, often expressed as a percentage, through their upline.
The schedule is what reconciliation checks against: if a policy was paid at a lower level than the contract says, that is a commission error.
Knowing the right rate for every policy is the only way to know whether the carrier paid correctly.
"We check every statement line against the commission schedule for that agent's contract level."
How do insurance contract levels affect commission?
Each contract level maps to a commission rate per product in the carrier's schedule. An agent's level decides their rate, and the gap between levels funds overrides for the upline.